jr02518 wrote:
There are four things we all do every day:
1. Turn on the lights.
2. Use the telephone, yes I'm old.
3. Put gas in the car, it's a metaphor.
4. Buy food.
These are the things you should be investing in.
And if your state of residence offers Tax free Municipal Bonds, start buying in a fund.
You will be picking them off at increasing rates of return and in California they are State and Federally tax free.
Got to love tax free cash flow.
That works when you're looking for an income stream, but not when you're looking for growth. Time horizon is extremely important.
mtn
UltimaDork
12/5/13 10:12 a.m.
gofastbobby wrote:
z31maniac wrote:
gofastbobby wrote:
jr02518 wrote:
3. No one can live on their projected 60% of current income, be honest.
This bears repeating, to let it sink in. I am planning on my living expenses in retirement to be 120-140% of my current expenses, not including inflation. Healthcare costs are awful, and like it or not, by retirement age we all will have to pay for a certain amount of it.
Really?
Even with my current debt load I could still live on 65% of my current income. Once that is all taken care of, which it all will be (except the house) in the next 3-5 years, I could get by on even less, and then even less once the house is taken care of.
Then again we are DINK's that live in an 1100 sq ft home, so....
A coworker of mine, who is nearing retirement age, was explaining to me yesterday of how his affordable health insurance option for coverage of just his wife would cost him $480/mo. That included a deductible of $7500/year. Just one of his wife's medications she is on will take up all of that deductible in a years time. After that, he has to pay at 20% copay on everything. His out of pocket expenses if retired, would be over $1100/mo if she stays healthy throughout the year and there are no added visits/medications/illnesses. He is covered through the VA, otherwise he would have to pay a lot more for his own healthcare.
If he is nearing retirement age, shouldn't medicare be kicking in soon?
In reply to mtn:
Yes. However his wife is younger. Medicare, since you mentioned it is not free. I believe it will become harder and more expensive to get the healthcare you need through medicare.
I myself may end up with a giant pile of money I don't use. But I will not be shortchanged and looking to my family for help because I didn't look at the realistic expenses of growing old.
Rupert
Reader
12/5/13 11:08 a.m.
gofastbobby wrote:
In reply to mtn:
I myself may end up with a giant pile of money I don't use. But I will not be shortchanged and looking to my family for help because I didn't look at the realistic expenses of growing old.
Unless you die early, you won't end up with a pile of money you don't use. You are correct to not depend on your family, that's a failing prospect.
If you live to enjoy it, that "giant pile of money I don't use" will be your joy and resource. That pile allows you to take trips, buy things you always wanted, dote on your grandchildren, and enjoy life without hiding from a land lord or getting your medical care at the local emergency room.
And if some of it is left when you do die, there are always people and organizations who can benefit from your inheritance! Planning my estate was one of the more satisfying things I have done in many years. If I kick off today, I'm ahead of the game. If I hang around another 10-15 years, I can still feel independent. That true feeling of independence is one of the greatest joys of retirement!
You're off to a wonderful start! Remember your life and style will evolve. Don't let your long term goals suffer because of that evolution!
